CFPB Report Shows Mortgage Complaints Down

A recent report shows consumer mortgage complaints decreased in 2022, however complaints regarding reverse mortgages increased over the past two years.

The 2022 Consumer Response Annual Report, published by the Consumer Financial Protection Bureau, said most of the complaints were about issues with loan statements and making payments.

The report noted, “In 2022, the monthly average for the top issue, trouble during payment process, decreased 5% compared to the monthly average for the prior two years.’

The report shows a decrease in complaints relating to purchasing a home, including applying for a mortgage or refinancing and closing on a mortgage, although they attribute some of the decrease to inflation and rising costs of homeownership.

Forbearance concerns increased in 2022. According to the report, “Consumers exiting forbearance plans stated that companies delayed reviewing and implementing modifications and deferrals. Consumers also reported receiving confusing or conflicting communications about modification and deferral options, and about payment amounts and timing.”

In addition, consumers applying for Homeowner Assistance Fund plans noted that companies weren’t timely in providing necessary information to state HAF programs, or that companies did not apply HAF payments in a timely manner.

Reverse mortgage complaints often referenced either getting statements or a payoff amount from their lender.

The CFPB adds that of particular concern is mortgage appraisals. The report notes, “In their complaints about purchasing or refinancing a home, consumers generally expressed dissatisfaction with valuations that appraisers provided and described how those valuations frustrated their ability to continue with their purchases. Some consumers stated that they believed they had been discriminated against. In their responses, companies consistently denied any racial bias in their appraisal process or stated that they could not substantiate the consumer’s claims. However, companies did sometimes revisit the original appraisal and raise it after receiving the consumer’s complaint.”